What's Happening?
Haryana is actively working to establish itself as a leading hub for electronics manufacturing by attracting investments under the Union government's Electronics Component Manufacturing Scheme (ECMS).
The state plans to announce a series of incentives through its Electronics System Design and Manufacturing (ESDM) Policy, which aims to offer both fiscal and non-fiscal benefits to investors. Chief Secretary Anurag Rastogi chaired a high-level meeting to strategize the setup of electronic component manufacturing plants and to boost the electronics manufacturing ecosystem in the state. Haryana currently contributes approximately 2.9% to India's total electronics exports and supports around 1.3 million jobs in the sector. The state aims to expand its contribution through targeted policy support and strategic investor engagement.
Why It's Important?
The initiative by Haryana to become a hub for electronics manufacturing is significant as it aligns with India's broader goal of enhancing its manufacturing capabilities and reducing dependency on imports. By offering incentives and creating an enabling infrastructure, Haryana aims to attract major investments, create employment opportunities, and integrate more deeply into the global electronics value chain. This move could potentially increase the state's economic output and provide a boost to India's overall electronics production, which has been growing at a compound annual growth rate of 17% since FY 15. The success of this initiative could serve as a model for other states looking to enhance their industrial capabilities.
What's Next?
Haryana is expected to announce its new ESDM Policy soon, which will detail the incentives available to investors. The state is also exploring additional top-up incentives to enhance its competitiveness in attracting ECMS-approved investors. As the policy is rolled out, it will be crucial to monitor the response from potential investors and the impact on the state's electronics manufacturing sector. The development of the Electronics Manufacturing Cluster at IMT Sohna will also be a key factor in the state's strategy to attract and retain investment.
